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Statements

Subject Item

dbr:Cost-sharing_mechanism

rdfs:label

Cost-sharing mechanism

rdfs:comment

In economics and mechanism design, a cost-sharing mechanism is a process by which several agents decide on the scope of a public product or service, and how much each agent should pay for it. Cost-sharing is easy when the marginal cost is constant: in this case, each agent who wants the service just pays its marginal cost. Cost-sharing becomes more interesting when the marginal cost is not constant. With increasing marginal costs, the agents impose a negative externality on each other; with decreasing marginal costs, the agents impose a positive externality on each other (see ). The goal of a cost-sharing mechanism is to divide this externality among the agents.

dcterms:subject

dbc:Mechanism_design

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51506398

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1059429536

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dbr:Economics dbr:Public_good_(economics) dbr:Truthful_mechanism dbr:English_auction dbr:Tatonnement dbr:Carpool dbr:VCG_mechanism dbr:Shapley_value dbr:Facility_location_(cooperative_game) dbr:Positive_externality dbr:Marginal_cost dbr:Surplus_sharing dbc:Mechanism_design dbr:Convex_function dbr:Mechanism_design dbr:Submodular_set_function dbr:Negative_externality

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dbo:abstract

In economics and mechanism design, a cost-sharing mechanism is a process by which several agents decide on the scope of a public product or service, and how much each agent should pay for it. Cost-sharing is easy when the marginal cost is constant: in this case, each agent who wants the service just pays its marginal cost. Cost-sharing becomes more interesting when the marginal cost is not constant. With increasing marginal costs, the agents impose a negative externality on each other; with decreasing marginal costs, the agents impose a positive externality on each other (see ). The goal of a cost-sharing mechanism is to divide this externality among the agents. There are various cost-sharing mechanisms, depending on the type of product/service and the type of cost-function.

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wikipedia-en:Cost-sharing_mechanism?oldid=1059429536&ns=0

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15145

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wikipedia-en:Cost-sharing_mechanism